Gold and silver are tumbling once again. Here is what you need to know.
November 23 (King World News) – Peter Boockvar: So the US dollar index (about half is the euro) is finally breaking to the lowest level since late April, albeit by a hair. The continued weakness is due to a few factors such as the big picture ones like the exploding US debts and deficits and rising current account deficit along with the short term one that we’re seeing a risk on trade on the heels of the very positive vaccine news.
US Dollar Hits Lowest Level Since April
Bitcoin is rallying on the dollar weakness but for some reason gold and silver are not (maybe some think it’s a safety trade and with the vaccine news there is less need to own it).
I heard on Friday someone say that Bitcoin was in the process of replacing gold as an asset and I think that is absolute nonsense. Something with a 10+ year history is not replacing something with a 5000 year track record. It can certainly complement it but not replace it and I believe it will be that complement that has traction.
Despite Pullback, Gold Near The End Of Its Lengthy
Consolidation Before Heading To New All-Time Highs
Bottom line, gold, silver and bitcoin should ALL be viewed with the same characteristics that they are not fiat currencies, are limited in its supply and thus cannot be printed ad infinitum…
Billionaire Eric Sprott just bought a 20% stake in a mining company
to find out which one click here or on the image below
Silver also has industrial uses as well, about 50% of the demand for it. They all should be considered a positive carry too vs the $17 Trillion pile of bonds yielding less than zero.
The Big Picture
King World News note: The gold and silver markets are most likely at the end of their corrections, bottoming at the end of November, which typically marks the end of weakness in the gold market prior to a big surge into February of the following year. With regards to COVID vaccine news impacting the price of gold, it is just noise. Gold is not in a bull market because of COVID. It is in a bull market because governments and central banks across the globe have lost their minds and are printing money in a coordinated manner in the greatest monetary experiment in the history of the world. Patience is what is required during times like this. Remain focused on the big picture and do not get shaken out of this bull market.
This is an incredibly important audio interview with Alasdair Macleod discussing the rapid approach of hyperinflation and everyone around the world should listen to it immediately by CLICKING HERE OR ON THE IIMAGE BELOW.
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